Foreign Direct Investment (9:05)

Foreign Direct Investment or wholly-owned subsidiaries afford an MNC increased control over its international business operations. This video discusses the advantages and disadvantages of the main methods for acquiring wholly-owned subsidiaries, building new facilities (greenfield investments) and buying existing assets (acquisitions/M&A). Compared other forms of foreign operation modes FDI is usually considered to be on the “risky” end of the risk/return continuum.